Dr. Reddy's Laboratories Realigns Global Generics Geography Portfolio

Dr. Reddy's Laboratories announced that it has realigned its Global Generics finished dosages strategy to focus on certain key geographies and would gradually exit some of the very small distributor driven markets. The markets being exited would have an overall contribution of less than 1% to the topline. In addition to the US, India, Russia & CIS and Germany where the operations are already very large contributing to approx 90% (fig. for 9 months ended Dec 2008) of the Global Generics revenues, the company will continue operations in 10-15 markets wherein the company's finished dosages sales are growing significantly.

This move represents an important new focus in the Global Generics business to consolidate and grow the Company's presence in the key geographies where it already has a considerable presence. The exercise would result in reduction of complexity of operations on one hand and help in significantly enhanced customer service and market share on the other.

Outlining the rationale behind this move, Satish Reddy, MD and COO, Dr. Reddy's said, "We intend to aggressively step up our presence in our key markets with this strategic prioritization. The market prioritization exercise would lead to redeployment of resources within the organization. The company will however continue to scan opportunities and attractiveness of international markets in line with its business strategy.

SOURCE: Dr. Reddy's